Short-term marijuana stocks have been a major draw since the Marijuana Industry began its public equity debut in October. But many investors are missing out on the investing benefits of holding a long-term marijuana stock.

Imagine you are a cannabis investor who has just received your first grower license. The first thing you do is take a close look at the grower’s investment plans.

Cannabis has been around for more than 4,000 years. Yet, the plant has been illegal for decades. Its prohibition has had a serious effect upon its medical applications. It is only now, in the early 21st century, that we are beginning to see the benefits of the plant. Not only has it been shown to be effective in treating medical conditions, it has also been shown to be effective in treating more traditional ailments. This has led to a rise in the number of doctors prescribing the plant for medicinal purposes.


Tilray Stock & Curaleaf Stock Both Look Strong, But Which Is Stronger?

The number of top marijuana stocks has increased, not decreased, in 2021. That’s because, as the legal marijuana sector expands, we’re seeing more and more possibilities for businesses to capitalize on new markets and increased income potential.

Curaleaf Holdings Inc (CNSX:CURA, OTCMKTS:CURLF) and Tilray Inc (CNSX:TLRY) are two of the most popular marijuana stocks (NASDAQ:TLRY). But, in the long run, which of these two marijuana stocks is the better investment?

For a long time, I would have argued that CURLF stock is by far the best long-term buy-and-hold investment (my personal investment philosophy for maximizing profits from the marijuana industry). But now it’s a little more difficult to respond to that question.

Because of Tilray Inc’s series of acquisitions and future-focused initiatives, TLRY stock has achieved significant gains in recent months.

Tilray stock made waves when it became the first marijuana firm to go public on a major U.S. stock market. When the TLRY stock initially went public, investors were ecstatic to be able to participate in the burgeoning marijuana industry via a major U.S. stock exchange.

While marijuana companies were previously accessible on Canadian stock markets (and U.S. investors could buy them over-the-counter), many American investors prefer to invest in firms that are listed on major U.S. stock exchanges.

When you combine the newly accessible Tilray stock with the potential to get in on the first floor with an initial public offering (IPO) in an industry poised to skyrocket in value, it’s no surprise that many investors were eager to take advantage of the opportunity.

However, there was a lot of smoke and not much flames. Following an initial price increase, TLRY stock has been on a long-term decline trend for over a year.

Which-One-Is-Better-for-Long-Term-Investors provided the chart.

Tilray Inc bought Aphria Inc, which put Tilray stock on a strong upward trajectory, and this has now turned around.

Tilray’s market value, manufacturing capacity, and revenue have all increased significantly as a result of the purchase, which has piqued the interest of many investors.

That’s logical. I’ve stuck to what I think is a successful approach in the marijuana market: growth-oriented acquisitions and expansions aimed at capitalizing on the many future possibilities.

This, in my opinion, is the better strategy than focusing on current earnings from the very small legal marijuana industry (most of the global market remains fettered due to prohibition).

The benefits of TLRY stock, on the other hand, were not lasting. There was a market downturn, much as Tilray stock’s initial encounter with euphoria, which fueled exponential gains.

1626695829_370_Which-One-Is-Better-for-Long-Term-Investors provided the chart.

However, investors who purchased Tilray Inc shares before to the company’s acquisition of Aphria Inc came out ahead. While the price of TLRY stock has suffered as a result of the correction, it is still in a very strong position, with the potential for even greater gains in the future.

Tilray stock, however, remains an untested product in my opinion. It has shown that it can acquire traction via excitement, but it has yet to demonstrate that it can maintain good momentum.

And, although I completely support Tilray Inc’s purchase of Aphria, that business had a lot of problems prior to the merger.

There’s a lot of room for profit now that the two struggling marijuana businesses have combined. However, when the excitement fades (or we don’t see real changes, such as substantial revenue growth), there’s a lot of potential for stagnation—or worse, decline.

Curaleaf stock, on the other hand, is in a fantastic situation.

1626695829_253_Which-One-Is-Better-for-Long-Term-Investors provided the chart.

Curaleaf Holdings Inc, the biggest marijuana business in the United States by market value, expects to earn more than $1.0 billion in sales in 2021. It would be the first legal marijuana business to do so (if it is indeed first, as there is some competition).

Curaleaf is also based in the United States, where it may be one of the first businesses to profit from federal marijuana legalization, which is expected in the coming years.

Curaleaf Holdings Inc has the potential to grow in the United States even before marijuana is allowed on a federal level, as additional states approve it.

Finally, much as Tilray stock benefitted greatly from being listed on a major U.S. stock market, Curaleaf stock would gain greatly from being listed on the Nasdaq or the New York Stock Exchange. This would bring in a huge amount of money, causing stock prices to rise.

Because CURLF stock is not allowed to be listed on the two main U.S. exchanges because marijuana is banned on the federal level, those two scenarios would occur almost simultaneously. Legalization of marijuana throughout the United States is just a matter of time, and with that in mind, I believe Curaleaf stock has a lot of upside.

So, although I believe TLRY stock has made significant progress, CURLF stock remains my #1 marijuana stock.

Expert Opinion

As the marijuana business expands, it will produce a slew of winners.

Even when previously weaker choices like Tilray stock have improved, no marijuana company has yet to surpass Curaleaf stock. As we approach federal marijuana legalization in the United States, I think CURLF stock will be one of the finest cannabis stocks for years to come.

Not everything in life makes sense, and one of those things is investing. There are so many different types of investors, from the ones who only invest in mutual funds, to those who pay no attention to the stock market, to those who are actively investing in various cryptocurrencies and other investment vehicles.. Read more about types of long-term investments and let us know what you think.

Frequently Asked Questions

Which investment is best for long-term?

The best investment for long-term is to invest in the stock market.

Is long-term Investing better?

Long-term investing is a strategy for investing over an extended period of time, typically in order to achieve a higher rate of return.

What should long-term investors do right now?

It is a good idea to invest in companies that are doing well and have the potential to grow.

This article broadly covered the following related topics:

  • long term investment strategies
  • short term investments
  • long term investment calculator
  • long term investment definition
  • long-term investment is which asset
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